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Thames Water's creditors form new board as part of proposed rescue deal
Senior creditors of Thames Water announced Monday the first set of directors who will oversee a decade long overhaul of Britain's struggling water utility, if its plan for rescue is approved. The group includes a turnaround expert and a retired civil servant. The UK's biggest water company, which is saddled with a debt of around PS20 billion ($27billion), has been struggling to survive after its owners have failed to adequately invest in the aging?infrastructure. Public anger has also been directed at the company over sewage spills into rivers. In July, the senior creditor consortium known as London & Valley Water proposed a revised plan of rescue that included a 10-year programme of transformation and a potential 'golden stake' for?the Government in an attempt to prevent the company from being taken under?public ownership by Prime Minister Andy Burnham's administration. The plan is designed to address critical issues like pollution and leakage by investing in Thames Water’s infrastructure. The appointments are dependent on the turnaround plan being approved, the water regulator Ofwat clearing all directors, and the new capital structure through a court sanctioned restructuring. The 'creditors', who hold PS17 billion in debt for the utility, have proposed that Openreach chair Mike McTighe be appointed to the board of 'Thames Water.' Other candidates include former Yorkshire Water CEO Liz Barber and ex-CEO Clive Selley. McTighe, the man who will lead the new Thames Water board and oversee the overhaul of the governance, said, "It's going to take some time for us to fix Thames Water. But we are committed to restoring trust with our customers -and the public that Thames Water serves." The group of directors collectively has experience in turning businesses around and running regulated utilities. In an emailed message, a spokesperson from the utility stated that Thames?Water is working constructively in order to?reach a long-term agreement which will support its financial stability.
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UK informs energy chiefs of cyber attacks linked to Iran
Britain briefed the 'chiefs' of energy companies on Monday on how to protect their assets, after reports that Iran-linked hackers had allegedly'shut down a small energy facility. The Telegraph and Financial Times both reported that a cyber-attack, which they said occurred?in July? and was attributed to hackers with Iranian links, forced a small British generator off line for four days. Michael Shanks, Minister for Energy, did not say who or where the incident occurred, but he said that the government and industry took the incident very seriously. They were working with regulators and National Cyber Security Centre in order to assess threats and improve protections. Shanks, in a blog post on X, wrote: "To be clear: There was no threat to the wider grid and no one lost power." The generator is small, especially when compared to?what many of us would consider a "power station/plant". A spokesperson from Britain's energy department stated that there is no risk to the system as a whole, and added that the country has a "highly-resilient" energy network. The?Iranian Embassy in?London didn't immediately respond to an inquiry for comment.
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Gold reaches a 3-month high before US inflation data and Fed chair speech
On?Monday, gold prices reached their highest level in over?three month as a subdued Dollar?lent support. Meanwhile, attention shifted to important U.S. Inflation data and Kevin Warsh's speech this week. As of 0644 GMT spot gold rose 0.9% to $4,643.63 an ounce. This is the highest price since mid-May. Prices rose by more than 5% in the last week. U.S. Gold Futures increased by 0.4% to $4,699.10. The dollar was a little off its multi-month lows as the market was unsettled after the U.S. Treasury announced that it would buy back additional long bonds. A weaker dollar means that holders of other currencies can afford to buy greenback-priced gold. Tim Waterer is the chief market analyst for KCM Trade. He said that gold has started the week in a positive mood and has returned to the bid mode. It's taking its cues from the weaker dollar, and it's also focusing on the higher yields, which may signal underlying economic strains or policy uncertainty. Watching the July Personal Consumption Spending price index and Fed Chair Warsh’s speech this week at the Jackson Hole Symposium will give us new clues about the U.S. rate outlook. The traders will pay close attention to any change in tone regarding the current policy and its relationship with recent developments on the bond market. Waterer stated that a 'balanced' or 'cautious? tone, which leaves room for flexibility, would allow gold to continue its gains. The U.S., on the geopolitical side, threatened Iran with "the greatest financial offense ever marshaled" as they prepared to roll-out economic sanctions targeting?Iran’s trade partners. Investors took profits before the announcement. Silver spot gained 0.1% to $69.03 an ounce. Platinum gained 0.5%, reaching $1,887.28, and palladium added 0.3%, at $1,353.34.
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Exxon and Lyondell are among the bidders for Shell's US chemicals assets. The deal could be worth $8 billion according to FT.
The Financial Times reported that Shell has attracted interest from bidders such as ExxonMobil, LyondellBasell and others for its U.S. chemical assets, which could fetch up to $8 billion. The report cited people who were familiar with the matter as saying that the private equity firm Apollo Global Management, and the chemicals division of the state-owned Kuwait Petroleum Corporation, had also expressed an interest in the?assets. Shell is looking to sell off underperforming chemical?plants. Shell, ExxonMobil and Kuwait Petroleum have not responded to requests for comment outside of regular business hours. Shell, ExxonMobil, LyondellBasell Apollo and Kuwait Petroleum did not immediately respond to? The FT reported that Shell's U.S. chemical business includes plants in Louisiana, Texas, and Pennsylvania, which produce chemicals for plastics, pharmaceuticals, and detergents. The newspaper reported that potential buyers had submitted non-binding bids last month. These included proposals for both the whole business and parts of it. According to FT, the reported price represents a significant discount from the amount of capital Shell invested in the facilities. Shell has agreed to sell its renewables business in Europe onshore to TotalEnergies earlier this month as the British energy giant 'continues' to reduce its low-carbon investment and focus more on its upstream operations and trade.
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British company offers to restart Australian manganese smelter
Natrium Redox Technologies is a British green technology startup that has made a 'firm proposal to the Tasmanian Government to purchase and restart Australia’s only manganese smelter to supply global battery and electric car markets. EY?Parthenon announced last month that the Liberty Bell Bay Smelter (LBB) would be closing after a failed sale. The former GFG Alliance owned by British industrialist Sanjeev Gupta entered voluntary administration and liquidation in March after suspending its operations at the end of last year. We have been working with EY Parthenon, the Tasmanian government and other stakeholders on this project for over six months. "We have also informed the federal government," said Natrium Redox Technologies in a press release. Our restart proposal asks for shared funding with the government of up to?A$15m ($10.75m) over a 16-week period, and the continuation of the current electricity contract. EY Parthenon, Tasmanian Business Minister Felix Ellis and others did not immediately comment. Natrium Redox Technologies stated that it initially planned to restart the smelter using conventional smelting techniques before building a new pilot plant which would use a new technology to create high-purity and low-emissions Manganese powder. This process removes oxygen from manganese ore by using liquid sodium instead of coking coal. The process operates at lower temperatures and produces no carbon emissions. The company stated that the new technology will add between 20% and 40% to the site's production. It will also elevate the smelter from a conventional alloys smelter to one of the most valuable manganese operations around the world, producing battery-grade material. "Battery-grade materials sell at a?far higher?price?than conventional alloys. This secures LBB's future financial stability and ensures it remains an important strategic minerals asset for Australia." Natrium Redox Technologies stated that its proposal would "provide more than 200 new jobs, previously associated with the smelter as well as secure other during construction." The company also proposed to reprocess A$210,000,000 worth of environmental?liabilities that have accumulated over decades?of slags and wastes, thus removing the environmental liability?from government. The company stressed that time is of the essence, as the longer furnaces sit idle, the more difficult and expensive it will be to restart them. ($1 = 1.3953 Australian dollars) (Reporting by Melanie Burton; Editing by Jamie Freed)
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Gold reaches a 3-month high before US inflation data and Fed chair speech
On Monday, gold prices reached their highest level in more than three month's time as a'subdued' dollar lent support. Meanwhile, attention shifted towards key U.S. data on inflation and Kevin Warsh speaking later this week. As of 0427 GMT spot gold was up 0.8% to $4,641.27 an ounce after reaching its highest level since 15 May earlier in the session. Prices rose by more than 5% in the last week. U.S. Gold Futures edged up 0.4% to $4,697.70. The dollar was teetering near multi-month lows as the market remained unsettled after the U.S. Treasury promised to?buy back more long bonds. The weaker dollar allows holders of other currencies to afford greenback-priced gold. Tim Waterer is the chief market analyst for KCM Trade. He said that gold is in a good mood to begin the week. It has moved back into a bid mode, and is taking its cues from the weaker dollar. For new clues about the U.S. rate outlook, the July Personal Consumption Expenditures price index data will be closely watched. Also, Fed Chair Warsh’s speech this week at the Jackson hole?symposium is also worth watching. "Traders are closely watching for any change in tone regarding the policy direction and how that fits with recent bond market developments. Waterer stated that a cautious or balanced tone, which allows for some flexibility, would allow gold to continue its rise. The U.S. warned Iran of "the greatest financial offense ever marshaled" in preparation for economic sanctions targeting?Iran’s trade partners. Oil prices fell?more that $1 per barrel as investors took profits before the announcement. Silver spot remained steady at $68.98 an ounce. Platinum increased 0.1% to $1 878.88 while palladium remained flat at $1 350.00.
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Morning Bid Europe-Mixing trade wars, economic wars and actual warfare
Wayne Cole gives us a look at what the future holds for European and global markets. Investors are awaiting details about President Trump's economic 'war' on Iran. This has led to a nervous start for the Asian markets. The main move was a drop of 1.5% in the oil price. Treasury Secretary Scott Bessent will hold a press briefing at 2 pm EST (1800 GMT) on Wednesday to announce even more severe economic sanctions against a country which has been subjected to near-continuous sanctions since 1979's Islamic Revolution. Trump said that sanctions would also be imposed on any country that supports Iran. However, he never mentioned Russia or China. It will be interesting to see how Bessent avoids the topic in front of the media. If there is no action taken against?China or India, then the steps would lack credibility, and oil prices could rise. Analysts worry that Tehran could retaliate with attacks on energy infrastructure in Gulf. Iran has already promised to stop all oil exports out of the Gulf if "the economic war" continues. The White House is also perceived to be admitting that military action failed and that the conflict would continue indefinitely. Bessent will also face questions regarding 'his double-buyback plan for Bonds which have, to date, had limited success at calming the Treasury Market. The yields on 30-year bond are currently trading at around 5.25%. This is within striking distance of the 19-year high of 5.3371% that was reached last week. Many analysts have pointed out that buybacks don't address the debt and deficit problems at their core. They simply swap longer-dated paper for shorter-dated papers, and most likely with higher yields. Bessent's efforts to loosen financial conditions are at odds with Fed chair Warsh, who seems to rely on the bond markets to tighten policies so that he does not have to increase the cash rate or risk Trump's anger. Warsh's response to questions about the?buyback at Jackson Hole, on Friday, will be very interesting. Canada is another country that faces the threat of a full-blown?trade conflict. The?loonie initially dropped in response, but has since recovered most of its loss. At 1.3791, the greenback isn't far from the three-month low of?1.3729. Carney is betting that adding a war of trade to an already existing one just weeks before the midterm elections will not endear Trump to the consumers who are already irritated by the cost of living. The tech-heavy markets of Japan, South Korea, and Taiwan are also awaiting Nvidia’s results, which will be released on Wednesday. Although blockbuster profits seem to be all but assured, they may not meet the high expectations. Options suggest a range of 5,0% to 6,5% after the results. Market developments on Monday that may have a significant impact Norges Bank Governor Ida Wolden Bache's speech Chicago Fed Activity Survey for July
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Gold reaches a 3-month high before US inflation data and Fed chair speech
On 'Monday,' gold prices reached their highest level in more than three month as a subdued Dollar lent support. Meanwhile, attention shifted towards key U.S. Inflation data and Kevin Warsh's speech this week. As of 0155 GMT spot gold was up 0.5%, at $4,627.42 an ounce. It had earlier reached its highest level since May 15 during the session. Prices rose by more than 5% in the last week. U.S. Gold Futures edged up 0.1% to $4,683.80. The dollar was teetering near a multi-month low in a market unsteady by the?U.S. Treasury's promise of buying back more long-term bonds. The weaker U.S. Dollar makes greenback priced bullion more accessible to holders of other currencies. Tim Waterer is the chief market analyst for KCM Trade. He said that gold is starting the week in a positive mood. It has re-entered the bid mode and is taking cues from the weaker dollar. The higher yields could be a sign of underlying economic tensions and policy uncertainties. For new clues about the U.S. rate outlook, watch the July Personal Consumption Expenditures price index data as well as Fed Chair Warsh’s speech this week at the 'Jackson Hole Symposium. "Traders are watching for any shift in tone regarding the policy direction and how that fits with recent bond market developments. Waterer said that a cautious or balanced tone, which leaves room for flexibility, would allow gold to "extend" its gains. The U.S., on the geopolitical side,?threatened Iran by launching "the greatest financial offense ever marshaled" in preparation for economic sanctions that target Iran's trading partners. Oil prices dropped by more than $1 per barrel as investors took profits before the announcement. Silver spot fell by 0.3%, to $68.76 an ounce. Platinum fell 0.5% to $1868.03, while palladium dropped 0.3% to $1345.87.
Sources say that QatarEnergy and Iraq's SOMO offer to load crude oil inside Hormuz through tenders.
Multiple trade sources reported on Monday that 'Iraqi state oil marketer SOMO and QatarEnergy are offering crude in rare tenders which require buyers to load their cargoes within the Strait of Hormuz.
Sources said that SOMO offered September-loading Basrah Medium or Basrah Heavy Crude from Iraq's Basrah Oil Terminal or Single Point Mooring?and its related facilities.
Iran's official news agency IRNA said that Baghdad had repeatedly requested permission to allow a number of Iraqi tankers to cross the Strait of Hormuz.
The bids for Iraqi oil will close on the 26th of August.
QatarEnergy, in addition to SOMO, has also offered al-Shaheen?, 'Qatar Marine'?and Qatar Land?crude for loading on September and October at their respective loading ports in Qatar. The tender is valid until August 25. Reporting by Nidhi Verma and Siyi Liu from New Delhi; Editing by Christopher Cushing and Christian Schmollinger.
(source: Reuters)